Deloitte has recently predicted a significant 13% growth in the production of vital chips across various industries this year.
Meanwhile, VentureBeat has highlighted the rise of accelerator chips fueled by generative artificial intelligence, smart manufacturing, global assembly and testing capabilities, and enhanced IP security against cyber threats.
These chips play crucial roles in cell phones, robotics, automobiles, household appliances, defense systems, and more.
As of today, China currently leads in producing 5 to 7 nanometer chips, crucial for industrial and mobile applications, and is expected to advance to even smaller nanometer scales before the US.
Consequently, the US is providing public support to its semiconductor sector.
This year, support will be directed towards several manufacturing projects by GlobalFoundries (NASDAQ:GFS) in New York and Vermont, along with incentives for Microchip Technology (NASDAQ:MCHP) and BAE Systems (LON:BAES).
Currently, only a handful of companies like Korea's Samsung (OTC:SSNLF) and Taiwan's Taiwan Semiconductor Manufacturing (NYSE:TSM) can manufacture the most advanced three-nanometer chips.
Additionally, the memory chip market shows promise, with inventory levels for chips used in computer storage devices currently below average.
As a result, semiconductor companies in Europe, with less exposure to automotive and industrial sectors but more focus on memory chips, may witness higher profits.
So, in this article we will explore some intriguing European and Asian stocks in the semiconductor sector that you could consider adding to your portfolio.
ASML (NASDAQ:ASML) offers advanced semiconductor equipment systems, including lithography.
Formerly known as ASM Lithography Holding
Read more on investing.com